News / Freighter capacity on the rise, with air cargo demand expected to pick up

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The to-ing and fro-ing of tariff news has made reading the current airfreight market challenging.  

In the past week, global freighter capacity was 4% higher than the average of the previous four-week period, with the greatest gains on Asia-Europe, +11%, according to Rotate’s capacity database. 

Asia Pacific to North America was up 8%, and up 7% on the westbound route, while Middle East to Asia also rose 11%. The biggest declines have been between North and South America, likely owing to a drop in demand for flowers following Mothers Day in the Americas. 

Intra-Asia demand remained strong, said Dimerco today, following freighter cancellations at the end of April and early May, with overall capacity down compared with a year earlier. 

Chinese carriers have introduced an air-air service, added the forwarder, with China Southern, Air China, and China Eastern offering freighter capacity from Hanoi to China and then on to the US. 

“This service is expected to ease pressure on Vietnam–US outbound capacity during the upcoming peak season,” said Dimerco. 

Kathy Liu VP, global sales and marketing, added: “Since 12 May, we have observed an increase in orders from US customers. However, most shipments are currently being booked via ocean freight. We anticipate that air freight demand will begin to pick up from mid-June.” 

AI and hi-tech continues to drive export demand to the US from Taiwan, and rate increases are expected. Dimerco said that rates from East China to the US had gone up some 10%, but it expected some flight cancellations at the end of May.  

China Cargo Airlines has launched a three times a week freighter service from Shanghai to Bangkok, while Japan Airlines has cut flights from five to three per week on Tianjin – Narita. Rates from Japan to the EU are said to be on the rise. Capacity from Guangzhou to Taipei has also fallen, from five flights a week to four.  

Dimerco warned that from South Korea, bookings to the US must be made at least two weeks in advance, while Asian routes from South Korea “are seeing increased demand from perishables and semiconductor equipment/parts”. 

In June, Qatar Airways Cargo and Virgin Australia are adding 180 tons of weekly capacity between Qatar and Australia, while could lead to more competitive rates. 

Dimerco advised its customers seeking capacity to the US that they must “ensure all documentation is provided and settled before shipment to avoid delays and issues with US Customs”. 

It also noted that the US perishable season is underway, with cherries and peaches destined for Asia, but that flight capacity can be volatile.